Question

Part III-Consumer Price Index The U.S. Consumer Price Index (CPI) from July 2005 through March 2006 is shown below. CPI 199.0 198.5 198.0 197.5 196.5 The approximating curve shown is given by the function It) 0.06t-0.8t2+ 3.Jt+ 195,0st s 8, where t is time in months and t=0 corresponds to July 2005 1. Use the model to compute the monthly inflation rates for December 2005 and February 2006. Show work and include units with your answer. slowing down (decelerating) in February 2006? Show 2. Was inflation speeding up (accelerating) or work 3. Construct a sign analysis for the second derivative function and then use it to determine over what speeding up and slowing down. intervals (use interval notation) inflation was

Answer 1

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